What is Dispatching? and how is it different than Brokers?

I wanted to share with you some general information about dispatching so you have a better understanding as to what the service actually will do for 

There are four main components of Trucking:

Shippers - ( the entity that needs goods or products transported)

Brokers

Dispatchers

Carriers - ( example: YOU!)

A Broker - or Freight Broker, is a middleman between shippers and carriers. Their job is to connect shippers with carriers and negotiate the rates and terms of transportation. Freight brokers do not own any trucks, warehouses, or other transportation assets, but they have a network of carriers they work with to find the best rates and services for their clients.

A Dispatcher - or a Freight Dispatcher is responsible for scheduling and coordinating the transportation of good s between shippers and carriers.  Unlike brokers, dispatchers work for carriers, and their job is to ensure that shipments are delivered on time and in good condition. Dispatchers are responsible for managing routes, tracking shipments, and communicating with drivers and shippers to ensure smooth transportation. That's why freight dispatch service is in great demand among the owner of trucks and fleets. 

So... what is the Difference??

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One significant difference between dispatchers and brokers is who they work for. Brokers work for the SHIPPERS, and dispatchers work the the CARRIERS. Moreover, brokers concentrate on securing the best rate and service for THEIR client (the Shipper), where the dispatcher is worried about trying to get the best rate for THEIR client (the Carrier). 

Although brokers and dispatchers may appear similar, their roles demand different skills and expertise. Their focus is very different, their allegiance is very different. The Broker is securing the rights to get the freight shipped from the shipper for a price, and then offering a reduced price to the carrier keeping the difference as their operating profit. They list those loads on load-boards, or offer them through their relationships directly with carriers or through dispatchers.  The Dispatcher works on the Shippers behalf like an agent and never is responsible for paying anyone, in fact, they are the last person in the chain to get paid, meaning they get a percentage of the load they secure for the Carrier. 

Good Dispatcher Vs Bad Dispatcher

Drivers are all different and unique. some run hard and others don't like running hard. some drivers may run hard at times and then back off at times. There are elements to being a good dispatcher that are very personal like understanding your personal style which is just that dispatcher taking a more personal interest in you - but do not let that confuse you in what is actually important in a dispatcher.

A good dispatcher suggests and Vetts loads, handles the Carrier package, submits paperwork, Check Credit, Check routes so that you can just drop and reload. A good dispatcher will submit your BOL to your factoring company and make sure that all the correct paperwork is there.  Most Important, A good dispatcher is going to negotiate freight to get you a higher paying rate.

A bad dispatcher is someone who just is "hustling" loads from the load boards to you for a percentage and not doing anything else for you. They are also often trying to lead you to do illegal things like over-weight loads or similar activities.  Surprisingly, a bad dispatcher will often be the person asking for a LOWER PERCENTAGE.

Here is why....

Lets say there is a $1000 load on a load board, and a bad dispatcher is charging you 4% and getting that load for you. You are paying them $40 and making $960.

That same load, negotiated up to $1200 by a good dispatcher who charges 10% is now getting paid $120 and you are making $1080 for the same load. Simply by working with a dispatcher who is more professional and handles their business with more responsibility.

This is that extra that can be the difference over time! This load paid $120 more by the good dispatcher.

$120 X 5 loads a week = $600 a week 

which is $600 a week X 52 Weeks in a year =  $31,200

That is an extra $31,000 dollars left on the table simply because a carrier wanted to go with a "cheaper" dispatcher not understanding that you often get what you pay for.

HOW DO I KNOW IF I HAVE A GOOD DISPATCHER?

This is the Challenge!!!!

Rely on trusted sources and referrals! Also, spot check your loads against load boards to see how they compare.